Kinetic Alpha

Practice focus · Digital & Derivatives

The instruments arrived before the plumbing did.

Perpetual futures came onshore, tokenized securities reached the exchanges, and a tokenized ETF was posted as margin at a clearing house — all inside twelve months, and all without the market-structure statute that was supposed to authorize it. What arrived instead was a set of instruments running on a settlement layer that still keeps banking hours.

This section covers both halves: the contract mechanics — funding, margin, liquidation, settlement-window construction — and the collateral rail underneath them, where the more durable structural change is happening.

58 hrs
a week markets trade with no central-bank rail open
7 venues
compared across 18 dimensions of margin and liquidation design
$19B
the cascade the margin work is anchored on

1 · What you actually own — the asset framework

Before an instrument can be designed on an asset, someone has to say what the asset is and how it behaves. Every crypto taxonomy in circulation classifies the claim and stops, which is a communication device rather than a risk model. This three-part series builds an alternative from the bottom up: one asset studied to exhaustion, then three more for class diversification and three sampling horizons, then a classification framework tested on a 53-asset panel — and reported honestly when the panel refuses to confirm it.

2 · Perpetuals — the format that came onshore

A perpetual is a funding-rate mechanism wearing a futures contract. It arrived in the US regulated perimeter faster than the margin frameworks around it did, which makes the design details load-bearing rather than academic.

3 · Contract design from first principles

Where the practice specifies rather than observes: full instrument designs — settlement window, funding construction, margin treatment — and the no-arbitrage relationships that discipline a listed complex.

4 · The settlement layer — what actually moves the money

The most consequential thread here, and the one furthest from the instruments themselves. Trading went continuous; the settlement rail underneath it did not. Everything about tokenized collateral follows from that gap.

5 · Margin, collateral and what breaks under stress

The connective tissue across everything above — and the part of the practice that comes directly from clearing-house risk work rather than from observation.

Where this connects

The threads that run out of this one.